'Travel overhead' calculates how much a trip really costs
— -- Over the years, I've received quite a few inquiries that involve the question of what I call "travel overhead." That's the cost of just being in your destination area. It has arisen several times with specific regard to cutting the costs of visiting New York City by staying in the suburbs:
"Why don't you recommend staying in New Jersey or on Long Island for visiting New York? You can find much lower hotel rates there."
The short answer to that question is "rather than fight the hassle of commuting, most travelers would probably prefer a cheaper hotel right in the City." But for some instances the issue is even broader.
This report was prompted by a press release from the folks at Marriott, promoting deals at hotels near Newark Airport that feature " Escape by Train" packages combining "great" room rates with one weekday or two weekend round-trip train tickets from Newark Airport to Manhattan plus free shuttle to and from the airport. But you can often find similar trade-offs at major cities around the world.
Travel overhead defined
"Travel overhead" means the daily or hourly out-of-pocket cost of just being in a destination. A lot of travelers don't seem to realize how much they pay just to be somewhere other than home. Here are two examples:
• Trip 1:Two people visiting New York from San Antonio for four days, three nights. Let's say the airfare is $300 each, they pay $250 a night (including taxes and extras) for a hotel room, and they spend $100 a day more for food than they would at home. The total cost is $1,750. Out of the four-day three-night period, they have 44 total, useful sightseeing/activity hours each. Their overhead cost of just being in New York is therefore just a tad under $20 an hour, each, or $40 an hour for the couple.
• Trip 2:Two people visiting London from Chicago for a week, seven days, seven nights (plus one night on the overnight flight to London). Let's say the airfare is $900 each (typical shoulder season), they pay $250 a night for a hotel room, and spend $100 a day more for food then they'd spend at home. The total cost is $4,250. On a seven-day stay, they each have 116 useful hours. Their overhead cost of just being in London is about $18 an hour each.
